Pro-Poor ICT Project Report – Tanzania:

A Community-owned Network

Final Version

By

Prof. Beda Mutagahywa <bmutag@udsm.ac.tz>

Dr. Respickius Casmir <res@udsm.ac.tz>

Mr. Theophilus E. Mlaki < tmlaki@costech.or.tz>

December 2006

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 EXECUTIVE SUMMARY

As part of its initiatives to make Information and Communication Technology (ICT)

work for the poor, the United Nations Development Programme (UNDP) in
collaboration with four countries in east Africa initiated and carried out a joint project
on Pro-Poor ICT. The said countries are Kenya, Rwanda, Tanzania and Uganda.
Primarily, the project aims at designing a community-owned network that will
empower the poor people especially in rural areas by providing them with reliable and
adequate access to ICT resources and facilities. Furthermore, such resources and
facilities will be shared among the people in the area to bring down the operational
costs hence ensure affordability to the majority without compromising the quality.

In the process consultants from each of the four countries were engaged. Each of the
consultants were given nearly the same terms of reference (ToR) to see to it that they
all deliver uniform research outcomes that are, of course, tailored to the specificities
of a given country. In Tanzania, consultants were from the University of Dar es
Salaam (UDSM) and the Commission for Science and Technology (COSTECH).

A case study for Tanzania was completed in Bugabo Division of Bukoba District in
Kagera Region. The area is in the lake zone along Lake Victoria. The population in
Bugabo is about 40,000 people (2002 Census). It is proposed to implement a non-line
of sight wireless technology network such as Worldwide Interoperability for
Microwave Access (WiMAX) to cover the division. The major proposed services to
be offered by such a local wireless network are Voice and Data. Since the area does
not have adequate coverage of GSM Network services, Voice over Internet Protocol
(VoIP) facility was proposed. Initial investment cost for the entire project was
estimated to US$ 84,040 details of which can be viewed in the report. The annual
current cost for the first year was estimated to US$ 93,008 and the annual income for
the first year of operation was estimated to US$ 258,000. Section four of the report
clearly outlines details of the estimates for initial investment cost, current annual cost,
income and expenditure.

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 Table of Contents:

EXECUTIVE SUMMARY ........................................................................2

List of Acronyms: .......................................................................................5

Section I: Introductory Section...................................................................6

Section II: Taking development and ICT to communities: assessment of

current approaches ......................................................................................8
2.1 Policies and Strategies for ICTs and PRSPs ................................................................................. 8
2.1.1 Tanzania’s Development Vision 2025................................................................................. 8
2.1.2 Poverty Reduction Strategy and Policies ........................................................................... 8
2.1.3 National Strategy for Growth and Reduction of Poverty (MKUKUTA) ........................ 9
2.1.4 Property and Business Formalisation Programme for Tanzania (MKURABITA)........ 9
2.1.5 TASAF (Tanzania Social Action Fund) ............................................................................. 9
2.2 The main instruments developed for ICTs, to enable and facilitate Development in rural areas 10
2.2.1 An overall ICT Policy and Strategy.................................................................................. 10
2.2.2 Liberalisation of the ICT Sector in Tanzania .................................................................. 10
2.2.3 Universal access funds and policies .................................................................................. 11
2.2.4 Cross-subsidies, Telecentres etc. ....................................................................................... 12
2.2.5 Sectoral strategies for e.g. education, health, e-government etc. ................................... 12
2.3 Current and future impact of ICT on the ground in rural poor communities .............................. 13
2.3.1 Fixed and mobile telephony: ............................................................................................. 13
2.3.2 Internet: .............................................................................................................................. 13

Section III: Community-driven ICT enabled development......................14

3.1 Local Profile, Development Needs and ICT Activity ................................................................... 14
3.1.1 Main features of the area................................................................................................... 14
3.1.4 Kibengwe Telecentre Activities......................................................................................... 20
3.2. An integrated ICT-Enabled Approach/Community Empowerment approach............................. 23
3.2.1 The community driven networking model:...................................................................... 25
3.2.3 The benefits of the community driven model vs purely private-sector model .............. 25
3.3 Community-driven network model in Detail................................................................................ 25
3.3.1 Roles of various local actors:............................................................................................. 25
3.3.2 The Technology Level:....................................................................................................... 26
3.4 Needs of, and challenges for, this model: .................................................................................... 26
3.4.1 Human Resources and Capacity:...................................................................................... 26
3.4.2 Technology Needs: ............................................................................................................. 26
3.4.3 Financing Needs: ................................................................................................................ 26
3.4.4 Regulatory Needs: .............................................................................................................. 26

Section IV: Business Plan.........................................................................27

4.1 Local Network Configuration ...................................................................................................... 27
4.2 Capital and Current Costs ........................................................................................................... 28
4.3 Potential Income.......................................................................................................................... 29
4.4 Contribution from various stakeholders ...................................................................................... 30
4.5 Prospective benefits ..................................................................................................................... 31

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Conclusion: ...............................................................................................32

References.................................................................................................33

Appendices................................................................................................34

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List of Acronyms:

ADP - Area Development Programme

AIDS - Acquire Immune Deficiency Syndrome
CBO - Community Based Organisations
CIR - Committed Information Rate
COSTECH - Tanzania Commission for Science and Technology
ELCT - Evangelical Lutheran Church of Tanzania
GSM - Global System for Mobile Communications,
HIPC - Highly Indebted Poor Countries
HIV - Human Immune Virus
HUYAWA - Huduma Ya Watoto Yatima
ICT - Information and Communication Technology
IICD- International Institute for Communication and Development
IP - Internet Protocol
IT - Information Technology
ITV - Independent Television Network
KAEMP- Kagera Agriculture and Environmental Management
Programme
KBC - Kenya Broadcasting Coperation
MDGs - Millennium Development Goals
MKUKUTA - Mkakati wa Kukuza Uchumi na Kuondoa Umasikini Taifa
MKURABITA- Mpango wa Kurasimisha Rasilimali na Biashara za Wanyonge
Tanzania
NGOs - Non-Governmental Organisations
NPES - National Poverty Eradication Strategy
NSGRP National Strategy for Growth and Reduction of Poverty
NSS - New Skies satellites
PRSP - Poverty Reduction Strategy Paper
PSTN – Public Switched Telephone Network
RC - Roman Catholic
REPOA - Research on Poverty Alleviation
RIA - Research ICT Africa
SACCOS - Savings and Credit Cooperative Societies
TAS - Tanzania assistance Strategy
TASAF- Tanzania Social Action Fund
TCRA - Tanzania Communication Regulatory Authority
TP& TC- Tanzania Posts and Telecommunications Corporation
TTCL- Tanzania Telecommunication Company Limited
TV - Television
TVT - Television ya Taifa
UCC- University Computing Centre
UDSM University of Dar es Salaam
UEFA - The Union of European Football Associations
VoIP – Voice over Internet Protocol
VSAT - Very Small Aperture Terminal
WAMATA- Walio Katika Mapambano na Ukimwi Tanzania
WiFi - Wireless Fidelity
WiMAX - Worldwide Interoperability for Microwave Access

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Pro-Poor ICT Project Report – Tanzania
Section I: Introductory Section

Information and Communication Technology (ICT) is unarguably one of the key

pillars for socio-economic development of any country. However, to exploit the full
potential of ICT access to networked resources must be made available to a bigger
segment of the citizens. This is equally true for developed and developing countries.
Research findings have clearly indicated that there is a direct link between socio-
economic growth and per capita vis-à-vis Internet penetration (Accenture 2001).

On the other hand, ICT is emerging as an important medium for communication and
exchange as well as a tool for development, including at the local and community
levels. However, this potential is yet to be effectively leveraged. In part this is the
result of an ICTD “affordable infrastructure and related service delivery and capacity
deficit” that many rural and peri-urban areas continue to experience and in part
because of the “development-policy and experience divide” that hinders the effective
mainstreaming of ICT in development interventions.
In view of this the United Nations Development Programme (UNDP) in collaboration
with stakeholders in the east African countries of Kenya, Rwanda, Tanzania and
Uganda formulated a Pro-poor ICT project to address the matter. Through a
combination of research, policy support, advocacy partnerships, networking and
capacity building, this programme component of UNDP’s making ICT work for the
poor service line aims to contribute to enlarging the policy options for enhancing pro-
poor access to communication tools, development information and services and
exploring the potential for strengthening community and local development through
the use of ICT.

In Tanzania the project involved study of various government policy documents

including those on telecommunications, ICT, poverty eradication strategy documents
and MKURABITA. Discussions and interviews were held with a number of ICT
stakeholder groups mainly in Dar es Salaam. A national workshop was organized to
discuss various national strategies for providing access to the majority poor sections
of the population, through lowering the cost of ICT access. The workshop, in this
regard, explored the potential of open access to major ICT infrastructures and the
viability of community driven networks, an illustrative case study was undertaken in
Bugabo Division Bukoba Rural District in Kagera Region.

The report is structured into four sections, including the current introduction.

Section II discusses policies and strategies in Tanzania with respect to rural

development and poverty reduction including an assessment of current approaches to
development and the role of ICTs.

Section III discusses Community-driven ICT enabled development: An Illustration

case. It further outlines the local profile, development needs and ICT activities in
Bugabo Division.

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Section IV particularly presents and discusses the proposed business plan. It clearly
outlines indicative estimates for local wireless network including Initial Capital
Investment Costs, Estimated Annual Current Costs, and Income & Expenditure
respectively. The plan specifically draws attention to the initial and ongoing
contribution made by the community as part of the sustainability of the project.

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Section II: Taking development and ICT to communities: assessment of current
approaches

2.1 Policies and Strategies for ICTs and PRSPs

Today Tanzania is implementing a number of policies and strategies aiming at socio-

economic growth and poverty reduction (National Policies 2006) (NSGRP 2005).
Although most of these policies and strategies target the entire country, some focus on
rural development in which more than 80% of the population resides. In this section
we highlight some of the key policies and strategies being implemented.

2.1.1 Tanzania’s Development Vision 2025

Development Vision 2025 is a long-term development philosophy that is the

articulation of a desirable future condition, and a plausible course of action to achieve
it. It seeks to actively mobilise the people and other resources towards the
achievement of shared goals. The vision is intended as a vehicle of hope and an
inspiration for motivating the people work harder for prosperity. The Tanzania of
2025 is to have five major attributes:
• High quality livelihood.
• Peace, stability and unity.
• Good governance.
• A well-educated and learning society.
• A competitive economy capable of producing sustainable growth and shared
benefits.

2.1.2 Poverty Reduction Strategy and Policies

Below is Table 1 summarizing the policy planning process in Tanzania.

Table 1: Policy Planning Process Summary

The policy planning process

Policy Planning Initiative
Development Vision 2025
National Poverty Eradication Strategy
(NPES)
Tanzania Assistance Strategy (TAS)
Poverty Reduction Strategy Paper
(PRSPs) officially titled: National
Strategy for Growth and Reduction of
Poverty (NSGPR 2005)
Objective
National vision of economic and social
objectives to be attained by the year 2025
National Strategy and objectives for poverty
eradication efforts through 2010
Medium-term national strategy of economic and
social development, encompassing joint efforts
of government and the international community.
Medium-term strategy of poverty reduction,
developed through broad consultation with
national and international stakeholders, in the
context of the enhanced Highly Indebted Poor
Countries (HIPC) Initiative.

The Poverty Reduction Strategy and Paper (PRSP) is an integral part of the Heavily
Indebted Poor Countries (HIPC) process, focusing mainly on poverty alleviation,
(NSGRP 2005) [is the NSGRP simply another name for PRSPs?]. Nevertheless, the

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PRSP encompasses poverty-oriented extra-budgetary activities, and various non-
financial considerations that have an important bearing on poverty reduction. The
elaboration of the PRSP has entailed broad consultation among the stakeholders, a
factor that has contributed to underlying consistency in the country’s development
policy objectives, including the strategy for poverty alleviation.

2.1.3 National Strategy for Growth and Reduction of Poverty (MKUKUTA)

Tanzania has now developed the successor to its first Poverty Reduction Strategy
Paper, called the National Strategy for Growth and Reduction of Poverty (NSGRP
2005). This strategy is very different and is better known by its Kiswahili acronym of
MKUKUTA (Mkakati wa Kukuza Uchumi na Kuondoa Umaskini Taifa). It is
strongly outcome-focused and has deliberately set out to mainstream cross-cutting
issues as integral to the strategy and not as "an add on". A very important feature of
the development of the review leading to MKUKUTA has been the implementation of
extensive consultation with a wide range of stakeholders on the content and focus of
the strategy with the aim of achieving national ‘ownership’. The MKUKUTA is based
on the achievement of three major clusters of broad outcomes for poverty reduction,
namely: (i) growth and reduction of income poverty; (ii) improved quality of life and
social well being; and, (iii) good governance and accountability.

The NSGRP was informed by the aspirations of Tanzania’s Development Vision

2025. It is, also, committed to the Millennium Development Goals (MDGs), as
internationally agreed targets for reducing poverty, hunger, diseases, illiteracy,
environmental degradation and discrimination against women by 2015. It strives to
widen the space for country ownership and effective participation of civil society,
private sector development and fruitful local and external partnerships in development
and commitment to regional and other international initiatives for social and economic
development.

2.1.4 Property and Business Formalisation Programme for Tanzania

(MKURABITA)

The Property and Business Formalisation Programme for Tanzania which is better
known by its Kiswahili acronym of MKURABITA i.e. Mpango wa Kurasimisha
Rasilimali na Biashara za Wanyonge Tanzania (NSGRP 2005), and is under the
umbrella of the MKUKUTA. It is expected that with the launching of the
MKURABITA, the situation for business will improve. The programme focuses on
improving the business environment and creating legal ownership of property and
access to facilities by property owners.

2.1.5 TASAF (Tanzania Social Action Fund)

TASAF is focused on giving more voice to citizens at both community and lowest
local government levels, and village councils. While retaining direct community
financing as a key empowering mechanism, it is being implemented through Local
Government Authorities. Target beneficiaries are: i) communities with inadequate
access to social services; ii) households with able-bodied adults suffering from food
insecurity; and iii) individuals living in poor households affected by acute shocks (like
HIV/AIDS).

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The main component is construction of social services facilities through the
Community Development Initiatives. The other main component is a public works
programme which appears to have been successfully in involving the poorest-of-the
poor and the women.

TASAF supports the social objectives of the local Government Reform. It may also
push local governments into being better partners for the communities and becoming
more effective in delivery of services and public works. The TASAF is intended to
help the government of the United Republic of Tanzania sustain the momentum of
ongoing reforms by facilitating improvements in socio-economic infrastructure,
enhancing capacity and skills among rural and peri-urban communities, and creating a
temporary safety net for the poorest sections of the communities.

In this regard, TASAF activities are designed to improve basic social and economic
services and protect vulnerable groups, including women and children, while the
positive impact of the ongoing structural adjustment and administrative reforms take
hold.

In summary, it should be noted that MKURABITA is, in fact, part of MKUKUTA

policy whereby the former is specifically meant for Property and Business
Formalisation Programme for Tanzania. TASAF, on the other hand, is an independent
policy focusing on giving more voice to citizens at both community and lowest local
government levels, and village councils in terms of socio-economic development.

2.2 The main instruments developed for ICTs, to enable and facilitate
Development in rural areas

2.2.1 An overall ICT Policy and Strategy

ICT policy:

The policy context: The Tanzania Development Vision 2025 singles out ICTs as a key
enabler for socio-economic development in Tanzania, ICT Policy (2003). It articulates
ten main focus areas in harnessing ICT in Tanzania: strategic ICT leadership; ICT
infrastructure; ICT Industry; Human Capital; Legal and Regulatory Framework;
Productive Sectors; Service Sectors; Public Service; Local Content; and Universal
Access. It is also noteworthy that Vision 2025 explicitly includes ICT by noting, “The
new opportunities that ICT is opening up can be harnessed to meet the goals of the
Vision”. This ICT Policy is therefore a reflection of national goals, objectives and
aspirations as expressed in Vision 2025, setting out digital opportunities that Tanzania
can exploit towards meeting the Vision 2025. The ICT policy which was formulated
and ratified in 2003 was geared towards realization of vision 2025.

2.2.2 Liberalisation of the ICT Sector in Tanzania

The Government of Tanzania introduced liberalization of the Telecommunications

Sector in 1994 following the dissolution of the then Tanzania Posts and
Telecommunications Corporation (TP&TC) into two independent bodies namely

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Tanzania Telecommunication Company (TTCL) and Tanzania Postal Corporation.
Later in 2003 the Tanzania Communications Regulatory Authority (TCRA) was
established which merged the Tanzania Communications Commission and the
Tanzania Broadcasting Commission.

TCRA became operational on 1st November, 2003 and has effectively taken over the
functions of the two defunct commissions. Specifically the Authority is responsible
for enhancing the welfare of Tanzanians through:

• Promotion of effective competition and economic efficiency;

• Protecting the interests of consumers;
• Promoting the availability of regulated services;
• Licensing and enforcing licence conditions of broadcasting, postal and
Telecommunications operators
• Establishing standards for regulated goods and services
• Regulating rates and charges (tariffs);
• Managing the radio frequency spectrum;
• Monitoring the performance of the regulated sectors.
• Monitoring the implementation of ICT applications

Tanzania today has made significant progress/improvement when it comes to

ICT use and deployment. Government institutions, private companies, and
academic institutions have made a step towards computerization of their
respective business processes. For example the number of people accessing the
Internet is increasing with time. This can be evidenced by the increase in the
number of Internet cafes especially in Dar es Salaam as well as other urban
areas. Business process reengineering is also picking up whereby many
organizations have computerized their financial information systems, human
resources information systems, academic information systems, and library
information systems just a few to mention.

Such remarkable improvements in ICT result from significant government

reforms in the following areas:

Formation of Legal and regulatory framework

Telecommunication sector liberalisation

The emerging of private sector in ICT

Partial Privatization of National Telecommunication Company (TTCL)

Removal of all taxes and duties on computers and peripherals

Issuing of licenses to private data and services operators

Establishment of Rural Community Telecentres in Tanzania.

Establishment of communications Converged Licensing Framework (i.e.
converging Telecommunication and Broadcasting)

2.2.3 Universal access funds and policies

A Bill currently under discussion is designed to put in place the legal framework for
the enabling environment for promoting the provision of communications service in
rural communities in Tanzania. It proposes to establish a Universal Communications
Services Access Fund, the objective of which is to enhance the welfare of Tanzania

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society by ensuring availability of telecommunications service in the under-served
areas.

In effect the Bill, once enacted into law, will promote the participation of the private
sector in the provision of telecommunication services in rural and under-served areas;
promote the social, educational and economic development of rural and under-served
areas; create a framework for an open and efficient access to and use communication
networks and services in production and availability of competitive market; promote
widespread access to quality services at affordable rates and ensure that rural and high
cost areas have access to communication and information services at affordable costs.
It will also promote agriculture, small scale production and help secure internal and
external markets for the rural products.

2.2.4 Cross-subsidies, Telecentres etc.

ICT access for rural areas: Rural areas often suffer from neglect and isolation, as they
are perceived as areas of high risk to investors (COSTECH 2006). However this is
where the vast majority of the Tanzanian population lives. In order to enable rural
areas to participate in the knowledge based economy, ways must be found to improve
ICT access for rural areas. Among current initiatives to enhance rural communication
access is the establishment of community telecentres in the following areas:

Sengerema Multipurpose Community Telecentre;

Rural Schools Community multimedia and computerization project;

Kasulu Internet Centres at Kasulu Teachers College and Mtabila Refugee
camp;

Ngara Lukole Multipurpose Community Telecentre Network;

Mwanza Community Telecentre (CTC);

The Integrated Rural Community Multimedia Project;

The Dakawa and Lugoba village ICT project;

Kibengwe rural communication access and development centre

This has been made possible mainly through collaborative effort between COSTECH,
UDSM and other development partners. However, this is relatively insignificant in
relation to the task of ensuring coverage in all rural areas.

2.2.5 Sectoral strategies for e.g. education, health, e-government etc.

Rural ICT access initiatives are a collaborative effort among stakeholders to bring to
communities and typical rural villages affordable ICT-based technologies for good
governance and transparency. Applications have been developed for health, education
and governance, in particular data collection manipulation and dissemination of
outputs. Rural Communication Access projects include training of users from the
villages and installation of equipment and Internet connection (COSTECH 2006).

The government of Tanzania understands that ICTs are tools that can contribute to
sustainable development and poverty alleviation, if applied to support existing
development activities. Use of ICT in government facilitates an efficient, speedy and
transparent process for disseminating information to the public and other agencies,
and for performing government administration activities

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2.3 Current and future impact of ICT on the ground in rural poor communities

2.3.1 Fixed and mobile telephony:

According to the 2004 E-Usage Index Baseline Survey done by Research ICT Africa
(RIA), access to a mobile phone is still low with 10 percent of all Tanzanians owning
one and almost 89 percent without (E-usage 2004). In rural areas access to a mobile
phone is only 4 percent, although the majority of the people in Tanzania live in rural
areas (80 percent according to the 2002 Tanzania Census).

About three-quarters of household (i.e. non-business) phones are fixed lines and the
remainder mobile phones. Although recently introduced, the pre-paid system in
Tanzania is predominant, with 72% of households using pre-paid phones. The study
found that mobile phones are more effective service in the country, with 10% of
Tanzanians owning mobile phones. Most mobile phone owners, however, are found in
urban areas, with 17% of the population in Dar es Salaam owning mobile phones,
10% in other urban areas and only 4% among the rural population, despite the vast
majority of Tanzanians living in rural areas (E-usage 2004).

2.3.2 Internet:

Access to the Internet and computers is extremely limited (E-usage 2004). Only 2%
of people in Tanzania have email addresses, and most of those live in Dar es Salaam.
More than three-quarters of those who have an email address use free public accounts.
Only 2% of all households in Tanzania have a computer – all in urban areas. Even
then, a mere 15% of these are connected to Internet, and they almost exclusively live
in Dar es Salaam. In general, there is negligible Internet penetration in Tanzania.

There have been in the recent years a number of developments in improving

connectivity in remote areas with varied degree of success. Successive governments
have liberalized the telecommunication sector and this has seen the emergence of
GSM (mobile) telephones, VSATs, WiFi, and Community Radios.

Not withstanding the above developments, still a number of factors are limiting access
such as:

High bandwidth cost: most rural Telecentres do not have reliable connectivity.
Experience has it that, if they do at all, they have to pay very high costs for
bandwidths.

High Cost for network equipment

High Maintenance cost for computers and network

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Section III: Community-driven ICT enabled development

3.1 Local Profile, Development Needs and ICT Activity

3.1.1 Main features of the area

Below is the map of Bugabo area

Fig. 1: Bugabo Map [Courtesy of TragelPost.com]

A local profile for the proposed project area, Bugabo division, is characterized by the
following attributes.

3.1.1.1 Economic activities: In Bugabo ward the main economic activities are:

Fishing

Farming

Livestock keeping, and

Small businesses such as reselling of local brew famously known as ‘Bigata’

Also, a few people living in the area are

employed in different private and public
organizations within the Bukoba urban
area. Other income generation activities
include micro-enterprises such as brick
making, vegetable gardens, tree-
seedlings and handicrafts. Currently
peasants are developing dairy farming,
tree planting and new cash crops such as
vanilla. Farming is one of the main
activity in the area and every individual
grows banana which is used for food
and making local brew.

Fig.2: Farmers carrying banana to the open market for sale

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3.1.1.2 Social activities:

Various social activities are carried out in the area including:

Saturday market: Every Saturday there is an open market where people go for
shopping and selling various goods and farm products. In addition, this offers
ample opportunity for relatives and friends to meet and exchange ideas on
different matters pertaining to their daily activities and social events within
their localities.

Watching Television (TV) programmes: A very small segment of Bugabo
Division has electric power, stretching from Nyakato to Kibengwe in the
township of Buhedangabo Ward. The area with electric power is about 5% of
the entire division. There are a very few residents, especially, in Nyakato
Ward with TV sets in their homes. Neighbouring households’ family members
gather at the nearest home with a TV set for watching various programmes
free of charge. On average there are at least two TV sets per village of
approximately 2000 residents. In addition, there are a few TV Kiosks scattered
in townships. In TV Kiosks people are charged between Tsh 100/- and 200/-
(Approx. US$ 0.08 to 0.16) per entry. TV channels commonly viewed in
Bugabo area include ITV, Channel Ten, Television ya Taifa (TVT), Uganda
channels, Star TV, and Kenya Broadcasting Corporation (KBC). Also they are
able to listen to radio programme such as Radio One. Radios that run on dry
cells are commonplace in the area. TV programmes attracting the majority of
viewers in the area include local comedies, Nigerians films, football especially
UEFA and FA Cup and News. Besides Pay TV in the TV Kiosks, in some
areas there are TV sets in a bar or restaurant. In such places one has to buy a
drink or some meal to watch a live TV program or a recorded event.

Football Teams: Villagers, especially, youths are organized in several groups
forming football teams in their localities that play against each other especially
over the weekends, and each practises at its own football pitch in the evenings
prior to friendly matches and local football tournaments. There are various
local tournaments including inter-villages, inter-wards, inter-divisions, and
inter-districts up to the Regional level. These sorts of gatherings bring youths
together and create friendships and cohesiveness amongst them. It is during
these informal gatherings that youths get to know each other and discuss
various matters affecting them and their societies. They also plan and layout
relevant strategies to deal with situations at hand. Local authority makes use of
the youths gathering to carry out HIV/AIDS awareness activities.

Social groups: Residents of Bugabo Division have created various social
groups with a view of helping each other in case of events such as interments/
funerals, wedding ceremonies, sicknesses, and the like. The social groups we
managed to meet and talk with during the needs assessment process include:
- Umoja wa wafugaji (meaning Livestock Association)
- WAMATA is a Swahili acronym. When literary translated, it means,
People in the Struggle Against AIDS in Tanzania. (Walio katika
Mapambano na AIDS Tanzania)

15
 - Chama Cha Ushirika wa Wakulima, a Swahili acronym, meaning Farmers
Association
- SACCOS- Savings and Credit Cooperative Societies – especially for
women in various wards.
- Chama cha Wavuvi, a Swahili acronym, meaning Fishermen Associations
- Vyama vya Vijana a Swahili acronym, meaning Youths Associations

Dancing Groups: There are various dancing groups for entertainment during
wedding ceremonies, promotional gatherings and political activities. In
addition, there are disco centres for recreational purposes especially for
teenagers and youths. However, there are growing concerns amongst parents
that disco activities create avenues for promotion of HIV/AIDS amongst
participating youths. As a result, some parents have banned their children from
participating in disco related activities.

Groups for Accumulating Capital: Different groups of people with common
interests are uniting to form informal groups aiming at accumulating financial
capitals for each other. Depending on the agreement amongst the group
members each individual in a group contributes between TSh. 500/- and TSh.
5,000/- per month to the common basket fund for the group. Each month the
group gives an interest free loan to one member of the group to be recovered
as per pre agreed terms and conditions. Saving groups have recently started
and expanding quickly. In these groups, peasants once every month harvest
bunches of bananas (used for making local brew) assemble them in one place
and auction them to entrepreneurs. The money earned is allocated to individual
accounts according to the weight in Kilograms of the bananas the individual
contributed to the auctions. All the money is saved in a common bank account
which earns interest. Once a year the group withdraws the money, which they
use for children school fees or other developmental activities.

Recreational Centre for Kids: There is a recreational centre for kids at
Nyaigando Convent at which children under 12 years of age assembles to play
with each other.

3.1.1.3 Cultural activities: In the area, cultural groups such as Choir and Dancing
groups are hired for entertainment on special events such as political, social religious
gatherings. Such events include weddings, political campaigns, Independence Day,
Uhuru torch and during inauguration of large scale projects. These groups are hired at
a rate of TSh.10,000/- to 30,000/- (i.e. US$ 10 to US$30) per event depending on
duration. In addition to this payment, entertainers are always provided with meals and
beverages during such events. Groups of entertainers consist of women, youths and
sometimes heterogeneous groups. Apart from these groups there are also Carpentry,
weaving and ornaments making groups in the area.

3.1.1.4 Community Based Organisations (CBO) activities:

Several community based organizations (CBO) such as Drama groups undertake
promotional activities and public sensitization during political, social and cultural
gatherings. Drama groups are mainly for sensitization on HIV/AIDS within the
society. Other CBO groups include Carpentry groups, basket weaving groups, and
groups for creating ornaments. Products that are produced by various CBOs are
mainly sold during the Saturdays markets.

16
3.1.1.5 Non-Governmental Organisations (NGOs):
Several non-governmental organisations (NGOs) are operating in the division each
with its own missions. Such organisations include:

Bugabo Area Development Programme (ADP) which is part of World Vision
International. Activities under Bugambo ADP include building classrooms for
various primary schools, installing water wells for different schools and
villages. It also runs various community-based socio-economic development
projects in the area. In addition, Bugabo ADP conducts various training
workshops and sensitization workshop on HIV/AIDS epidemic prevention and
control. It is, actually, one of the most active NGOs in the area. It is located
within 50 Meters from Kibengwe Telecentre.

VI–Agroforestry – A Swedish NGO helping community in agro-forestry
related activities. It was established by the Swedish women and it is currently
operating in East Africa region i.e. Kenya, Uganda and Tanzania. In Tanzania
it started in Mwanza Magu District and later expanded to Musoma in Mara
Region, Kagera in Bukoba in the Bugabo division and Karagwe in Bugene,
Nyaishozi ward and Kaisho-Murongo division.

Another NGO in the division is known as Kagera: HIV/AIDS Counselling
Homebased Care and Orphans Support. Its headquarters is in Bukoba town.
Nonetheless, it is extensively operating in Bugabo division. It pays school
fees for secondary schools and buys uniforms, shoes, schools bags, blankets,
buckets, matrices, pens, exercise books, and the like to the tune of
Tshs.100,000/- (approx. US$100) per student per year.

3.1.1.6 Religious Groups:

Residents of Bugabo division like others in Tanzania belong to various religious
denominations. At glance, Christian groups are apparently more active in the area
with respect to social and educational matters. This is partly historical since nearly all
regions in the lake zone of Tanzania were dominated by various Christian
denominations. Besides conducting faith related matters, religious groups are engaged
in other social activities in the area as follows:

The Evangelical Lutheran Church of Tanzania (ELCT) runs the following social
groups:
- HUYAWA: huduma ya watoto yatima (literary translated as Service for
Orphans)
- SACCOS: Savings and Credit Cooperative Society
- General ELCT services include: Building and supporting primary and
secondary schools; dispensaries, etc.

Roman Catholic (RC) offers/runs the following social services in the division.
- KOLPING: HIV/AIDS sensitization; vocational training; hotel services;
and soft loans to the residents only.
- Health centres
- Secondary schools
- Home craft centre
- Sisters Convent (Nyaigando)
- Orphans Centre
- Carpentry Factory and Trade School

17
Generally, there is a feeling that much as the two most active religious groups (i.e.
ELCT and RC) apparently have similar visions with respect to the socio-economic
development in the division, the two do not seem to coordinate their interventions.
However, they comfortably coexist in the division. Believers of the two religious
denominations collaborate in many different ways including participation in various
social development projects, education support, and cultural activities. If properly
coordinated and well informed, it is likely that they can equally participate in ICT
related project.

3.1.2 Development Challenges:

Besides the above mentioned socio-economic development activities Bugabo division
faces some developmental challenges as itemized hereunder.

Lack of reliable electricity

Lack of working capital for small businesses such as sale of clothes; fishing
tools and equipment; retail fish reselling; soft drinks kiosks; carpentry;
education support; acquisition of school training aids/materials; production of
local brew; mama lishe (i.e. informal restaurants); animal keeping (e.g. cattle,
goat, pigs and broilers); charging batteries and phones.

Unreliable means of transport and transportation of goods within and outside
the area.

Lack of reliable market for agricultural products

Lack of safe water for human consumption (no wells, reserve tanks and water
pumps in most of the villages in the area)

Inadequacy of both primary and secondary schools

Lack of staff/teachers, teachers accommodation, teaching materials, teaching
aids, students learning materials and desks

Insufficient teachers offices, student toilets

Lack of students recreational and playing grounds

Low income to natives

Political differences, especially, when leaders comes from different political
parties

Lack of technical/business skills for local entrepreneurs

Lack of appropriate business model that will be financially, technically
sustainable

Poverty among the people in the area

HIV/AIDS pandemic

A combination of these challenges puts the division at risk when it comes to prospects
for socio-economic development. However, with adequate access to ICT facilities
including the Internet most of the challenges may be addressed in a positive direction.

18
3.1.3: Profile of ICT in the area
Table 2: Profile of ICT in the Area
1. Name, Location (district,
region etc.)
2. Approximate population
3. Availability of telecoms
(mobile? fixed? internet
by satellite/fixed?)
4. Presence of telecentre
and/or internet cafes
5. Presence of
district/regional offices
6. Number of secondary
schools, primary
schools, third level etc.
7. Number of hospitals,
health centres etc.
8. Terrain (mountainous,
hilly, flat!)
9. Approximate area (in
square kilometers.)
10. availability of power
and its distribution
11. Presence of high
points such as existing
The locality is known as Bugabo division in Bukoba Rural
District , Kagera Region
Based on the 2002 Population and Housing Census - Village
and Street Statistics (Volume VII) issued by the National
Bureau of Statistics Tanzania
- No of divisions 1
- No of wards 5
- No of villages 17 (all interconnected to each other)
- Total population in the division 41165 (2002 census)
- Population per village is approx. 2400
Fixed telecom is only available at a very small part of
Nyakato ward (nearly 3% of the ward) which is served from
TTCL telecom exchange over copper line in Bukoba town.
The rest of the division does not have fixed line. Internet use
is only available at Kibengwe telecentre in Buhendangabo
ward in Rushaka village which is about 7% of the division’s
population. The Internet link at Kibengwe telecentre is via
VSAT that is supplied by SimbaNet which is a local agent for
New Skies Satellites (NSS). Currently the bandwith is
32kbps (CIR).
There is cellular coverage by Tigo, Vodacom and Celtel
operators. The entire division is nearly covered by GSM
cellular network from the three operators. However, there is
poor network coverage is areas that are between
neighbouring hills.
UCC in Collaboration with IICD and the local community
established a telecentre at Kibengwe area in Buhendangabo
ward in the division. The telecentre offers Internet and email
services. It also offers various secretarial services including
typing, photocopying, scanning, and printing. In addition, the
centre offers training services in basic computer skills. The
main activity is photocopying mainly by schools in the
Division and in the cyber café is Internet surfing especially by
youths and teenagers from within the vicinity.
Only local authority offices are available in the area including
division and ward secretaries’ offices, ward councilors, etc.
Regional and district offices are located in Bukoba town.
There are a total of
- 21 Primary schools
- 7 Secondary school
- 1 Vocational training centre (Homecraft)
- 1 Farmers Education Centre (Kaagya)
- 1 Carpentry Training Centre (Kashozi)
- 1 Convent under Roman Catholic Nuns
There is are
- 1 Health Centre
- 7 Dispensaries
The area has several hills. However, they are located in such
a way that a wireless transmission is possible with fewer
masts.
150
Power is only available up to Kibengwe area in
Buhendagabo ward (see the area Map)
Higher points are available up hills. Some of the hills are well
positioned to serve as mast/tower mounting points. For
19
 towers, buildings, hills. example, If a wireless tower/mast is mounted at Buzi hill
which is located about 7 Km from Kibengwe telecentre it can
easily serve nearly 30% of the area. If a wireless tower is
mounted at Bumbire hill in Rubafu ward can serve another
30% of the division area. Generally we need a maximum of 3
wireless towers to cover entire division. Actual
measurements may be obtained from Riyaz Bachani’s
survey Report in Bugabo division.
12. location of above Kibengwe township which is a business centre of Bugabo
(center of town etc) division is about 13 km from Bukoba town. The farthest point
from Kibengwe centre is Rubafu village which about 25 Km.
13. foliage (big trees etc) Highly farmed with lots of banana plantations and partly covered
with trees such as Eucalyptus. (see attached picture)
14. density of settlements High
15. Other institutions in the - 3 Primary courts
area - 5 Farmers cooperative societies
- 3 Fishing villages/settlements

There is no TTCL telephone (fixed line) access in most of Bugabo division and
electricity is only available at some few places, especially along the main road from
Bukoba town up to Kibengwe township. As indicated in Table 1, cellular phone
coverage is in principal over the entire division. However, in some places especially
those down the hills have poor signals (i.e. due to signal attenuations).Unfortunately it
is these areas with low bandwidth which are mostly populated. Prices for mobile
handsets are considerably high in the sense that a few people can afford. It was
observed that the majority with cellular phone handsets obtain them from their
relatives who are living/working in towns or abroad. In a village there are about 10
cellular phone handsets on average.

Once one has a handset the next challenge is affordability to keep it charged. Prices
for charging a cellular phone handset in the area range from Tsh 100/- to 200/-
(approx. US$0.1 to 0.2) per full charge. The common means/places for charging
handsets are at Kibengwe telecentre, in Bukoba town, using electric generators, solar
power and car batteries. The latter is the most common means in villages.

3.1.4 Kibengwe Telecentre Activities

The primary goal of the project is to provide reliable and affordable access to ICT
facilities to the Kibengwe community. This will in turn contribute towards
minimizing the gap between rural and urban on the use of ICT facilities. Ultimately
this will significantly contribute to the overall socio-economic development and
poverty alleviation initiatives in Tanzania. The centre is up and running since June,
2004.

Partners in the establishment of the Kibengwe Telecentre include: University of Dar

es salaam Computing Centre, NGO’s like the World Vision and KAEMP (Kagera
Agriculture and Environmental Management Programme), the Local Community and
International Institute for Communication and Development (IICD) in the
Netherlands.

Main activities:
• Sending and receiving email

20
 • Listening to online News
• Printing documents
• Scanning texts and images
• Photocopying
• Reading online Newspaper
• Viewing online movies and comedies (e.g. Nigerian movies)
• Searching for education opportunities worldwide
• Viewing Examination results
• Downloading teaching/learning materials
• Downloading MP3 music
• Reading on HIV/AIDS matters
• Training in computer basic skills
• General web surfing

Facilities at the Telecentre :

- There are 6 computers connected to the Internet,

- 16 Computers in the Training room(one computer connected to the
Internet)
- 2 Printers
- 1 Photocopier machine
- 1 Scanner
- 1 Telephone
- 1 LCD Projector
- 1 World space radio

Major customers:
Major customers are youths, teachers

3.1.4.1 Staffing and Organisation of the Telecentre

Board Representatives:
UCC, KAEMP,
User Committee,
Local Government (District)

User Committee comprises of

Representatives from: Agriculture, Technical Support Team (UCC)
Local Government, Health, Youth, and
Education sectors

Management Team: Project Manager,

Telecentre Manger, Technical staff

Other staff: Instructors, Internet Café operator,

security guards

Fig.3: Organization Structure of KibengweTelecentre

21
Kibengwe Telecentre is governed by the project Board and User committee. The user
committee comprises representatives from health, education, farmers, business
community, Government sector and youth sector from Bugabo division. The main
activity of the user committee is to advise and monitor the activities of the centres on
behalf of the board. The chairperson of the user committee is a member of the board
and participates in the decision making. The day to day operational issues are
managed by the Telecentre Manager commonly known as Entrepreneur who is
assisted by one operator, 2 watchmen and 2 volunteers. See Figure 3 for a complete
organization structure of the Telecentre.

3.1.4.2 Network Layout for Kibengwe Telecentre

Currently a nearby mission owned secondary school and one convent are connected to
the Internet through Kibengwe by wireless equipment. World vision office is
connected through UTP cable. Other centres such as Kashozi parish, Kashozi home
craft, Kalema secondary school and Lushaka Primary school will be connected to
Kibengwe when their financial position allows. Figure. 4 below shows the Kibengwe
Network layout.
N
KIBENGWE CENTRE
PHYSICAL PRESENTATION

Node6
Lushaka p/school

Node 5 Bugabo
World Vision Office

UTP cable connection

Node 7
Kalema econdary

Satellite dish wireless. Tower

Node 1. Kibengwe Central

Access Point

Nyaigando

Node 2
Nyaigando

Node 8
Kashozi parish
Node 3. Hekima
Girls’ Secondary
School

Node 4 Kashozi
Home Craft

Figure 4. Network Layout for Kibengwe Telecentre

3.1.4.3 Challenges facing Kibengwe Telecentre:

Unawareness of some members of the community on the importance of

ICT to their socio-economic development

Lack of proper coordination of ICT activities

Power interruption

22

Lack of inventor, standby batteries and generator

Lack of reliable transport to reach the majority

Lack of new computers and dependency on used ones

Lack of competent computer trainers

Absence of the permanent building for the Telecentre, staff
accommodation

Lack of exposure to user committee members and staff

Lack of awareness to the public

High cost of bandwidth

Lack of technical support within the area

Lack of funds for stationeries, and other tools and equipment

Sustainability of the centre both financially and technically

3.2. An integrated ICT-Enabled Approach/Community Empowerment approach

The community in question is about 41,000 strong in terms of population. In the

proposed community empowerment approach there are several clear benefits to the
community such as to:

Enable the community to harness the potential of network infrastructure

Establish services within the community including voice, data, video, various
earning material

Interconnect with other networks like GSM, ISDN and whole sale prices

Connect to satellite through Kibengwe. This implies
Broader sharing of bandwidths costs and enhanced project sustainability
Free Internet resources to be downloaded to the community network (i.e.
data storage/archive)
More advanced services can be developed
Broad VSAT bandwidths, etc

Develop management structures for the community network

Retain money/financial resources within the community and generate
employment opportunities

H ouse

Figure: 5 Typical Interconnection Model within Bugabo Division (Broadband &

VSAT)

23
In the interconnection model in Figure 5 it is proposed that intercommunication
within the area be done via broadband technology such as Worldwide Interoperability
for Microwave Access (WiMAX). Given that Kibengwe telecentre already has a fully
functioning VSAT then the Internet link shall be via the same to minimize the
investment costs. In addition, communication towers shall be strategically located on
appropriate hills for wider signal coverage. With this sort of setup, people in the area
shall be able to talk to each other via Voice over IP (VoIP) phones on matters
affecting their lives.

In the meantime, the money that would have otherwise been used to pay GSM
operators will now be retained in the community and for the community. This in turn
will enhance the sustainability of the project especially upon expiry of the external
financial support. On the other hand, the proposed broadband network could be
interlinked to other GSM and PSTN networks that have coverage within the area.

Potential users
Potential direct users for the VoIP facility in this area are estimated to be more than
10000 (see section IV). This includes government officers in the ward, teachers,
students, hospital staff, staff from other community based organizations (CBO) in the
area and the surrounding community.

Based on the experience from Kibengwe Telecentre, below are some of the
justifications of the needs for expansion of the facility:

(1) Pupils and students will get an ample opportunity to learn and use computer and
Internet facilities.

(2) Others would also take advantage of this facility to boost their income. For
instance women in this area can learn from their colleagues elsewhere through the
Internet on how to form and run various development co-operative groups, which
in turn will contribute to improvement of their social welfare

(3) Through the Internet people will be sensitized on how to overcome the deadly
HIV/AIDS virus and other communicable diseases in their area

(4) Pupils, students, teachers and others will use Internet facility to communicate
with other Institution through websites by downloading relevant material and
printing them for offline access and for later reference.

(5) Most of the residents of this area have children and relatives living outside the
region and some abroad. At the moment the means for communication for most
of Bugabo residents is an ordinary post through the Post office, which takes a
minimum of three weeks to reach the recipients, causing some inconvenience and
expense in the long run in terms of time and monetary terms.
(6) Even when Internet and email is fully deployed people will still need to call using
telephone especially when the link is down, to seek for technical support. Not
only that but also calling to areas where there is no Internet facilities.
(7) Farmers will make use of the Internet to search for better markets of their
agricultural products

24
(8) Likewise, fishermen will take advantage of the Internet facility for marketing their
sea products.

3.2.1 The community driven networking model:

3.1 Overview of the Business Model:

A community driven model proposed for the area

Proposed Business Model:

The project should be governed by the project Board and User committee. The user
committee should comprise representatives from health sector, education, farmers,
business community and youth. The main activities of the user committee should be
to advise, monitor activities at the centres, and the chair of the committee shall be a
member of the board in order to participate in decision making. The day to day
operational issues should be managed by a Project Manager. The manager will be
assisted by the instructors and a technical support staff. As the project picks up, more
personnel will be required hence creating employment opportunities to the local
people.

Operationally the model proposed is intended to be self sustainable. In this case a

minimal charge/fee will be introduced for each service delivered.
(See section IV)

3.2.3 The benefits of the community driven model vs purely private-sector model
• It is easy for the community model to acquire some funds from the local
government budget, and the funds obtained could be used for developmental
issues in the area.
• Administrative costs amongst government and NGO organs will be
tremendously minimized with the use of ICT facilities provided by such
models, since officials they will be paying a small amount of fee compared to
the purely private sector model
• The model will get more support from the government since these model are
there to support services would be provided by the government, hence
ensuring sustainability of the model.
• The success of such model will pose a challenge to the government to speed
up the rural electrification. Most villages in Tanzania have no electricity,
which is a prerequisite to Internet and other communication services.
• Since the minimal fee charged by the community model is more affordable
than the private model (which is for profit only), farmers with little income in
the area will be able to use the facilities for communication, knowledge on
appropriate farming, Campaign against HIV/AIDS will be more effective, and
the model will provide other benefits related to the Internet.

3.3 Community-driven network model in Detail

3.3.1 Roles of various local actors:

See section IV, item 4.4

25
3.3.2 The Technology Level:
Details on the technology required can be read from Riyaz Bachani’s Report
and/or Alberto’s report. However, a non-line of sight (NLOS) technology such
as WiMAX is to be implemented
3.4 Needs of, and challenges for, this model:
See section IV

3.4.1 Human Resources and Capacity:

See section IV

3.4.2 Technology Needs:

At least 1Mbps down link and 128Kbps uplink bandwidth can do to start with
irrespective of the technology adopted. Since the area is mountainous appropriate
wireless technologies such as WiMAX could be deployed in the area.

3.4.3 Financing Needs:

In the beginning there needs to be some funding for the take-off of the project. This
may be sourced out from different development partners, the Local Government
Authority and contributions from local NGO’s. Once the project is up and running,
the proposed business model may take charge. The proposed business model in
Section IV is appropriate for sustainability of the project. Some budget may be set
aside by the local government authority annually to serve as a subsidy to the project.
Likewise, revenues collected from users may add up to reinforce the project income
hence its sustainability (See section IV for details)

3.4.4 Regulatory Needs:

Tanzania’s ICT regulatory framework is one of the most liberal frameworks in sub-
Saharan region today. There are no regulatory barriers in Tanzania when it come to
deployment and using ICT. What limits development, however, is scarcity of financial
resources. Given a concerted effort this project will become a reality.

26
Section IV: Business Plan

4.1 Local Network Configuration

For this exercise, the following are the proposed physical characteristics of Bugabo
Community-owned network:

• The Hub at Kibengwe Telecentre, equipped with 10 computers and VoIP devices
for telephony.
• Non-line of sight local wireless network using WiMax or any other similar
technology coupled with a line-of-sight backhaul between neighbouring wireless
masts (see Figure 6).
• A local wireless network (802.11g) capable of very high bandwidth for voice and
video within the area. For fixed receivers/antennae, the network will extend to a
radius of about 10Kms from the Hub.
• With this kind of network setup nearly all schools, health centres, NGOs,
cooperative societies, local government offices and other partner institutions in the
area shall be covered and will be able to intercommunicate via Voice over Internet
Protocol (VoIP).
• Each of the partners including individual entrepreneurs shall be equipped with
VoIP handsets. Other people that do not have VoIP handsets should share with
any of the neighbouring peers at a nominal fee.
• Institutional partners such as schools, health centres, NGOs, and cooperative
societies shall at a later stage each be equipped with a computer, printer, and
scanner for multimedia processing depending on the availability of funds.
Since all computers shall be equipped with a web cam, users will be able to see each
other while on conversations.

House

Internet
House Backbone
Buzi Primary School
School

Kibengwe

School
Satellite dish
House

House
School
House
House
Respickius House
Health
Centre
School

House
House

Convent

Figure 7: Proposed Bugabo Local Area Wireless Network Kataale

27
4.2 Capital and Current Costs

The following tables: Tables 3, 4 and 5 give indicative estimates for local wireless
network including Initial Capital Investment Cost, Estimated Annual Current Costs,
and Income & Expenditure respectively.

Table 3: Bugabo Wireless Initial Capital Investment Cost

Bugabo Wireless Initial Capital Investment Cost

Cost per Total
Description Qty Unit US$ US$
Local Infrastructure
BreezeMAX Base Station Outdoor Radio Unit;
3.5GHz band 2 1,980 3,960
BreezeMAX Micro BST Indoor Network
Interface Access Unit 1 4,620 4,620
Antenna 3.5 GHz 2 475 950
Outdoor Unit to Antenna Cable 2 90 180
Indoor Unit to Outdoor unit cable 2 165 330
BreezeMAX Data Bridge Indoor Module 50 44 2,200
BreezeMAX Outdoor Radio Unit 50 474 23,700
Mast: 20 Metres 2 2,800 5,600
Installation & set up labour charges 1 2,200 2,200
Local 'Hot Spots'
Wireless LAN CPE 20 200 4,000
Wireless LAN Router 20 190 3,800
Local Premises Equipment
Computers with Webcams 20 1,000 20,000
Peripherals (printers, scanners etc.) 10 250 2,500
VoIP phones (with hand energy recharger) 100 100 10,000
TOTAL 84,040

Thus the total capital cost of equipment and installation is estimated to $84,040.00.

Table 4: Estimated Annual Current Costs

Estimated Current Costs Annually

Cost per
Unit
Description Number (US$) Total (US$)
External Bandwidth
VSAT 128Kbps/1Mbps month * 2,200 per
month 12 2,200 26,400
Depreciation
20% depreciation/replacement on capital
equipment per year 16,808 16,808
Hub Staff
Project Manager 12 550 6,600
Instructors 2 12 450 10,800

28
 Technical Support 12 500 6,000
Security 2 12 250 6,000
Utilities (electricity, water, etc) 12 350 4,200
Other unforeseen costs 12 150 1,800
Office needs, transport, stationeries, etc. 12 1,200 14,400
TOTAL 93,008

This model assumes employment of six staff to start with namely: a Project Manager;
Technical Support; 2 Instructors; and 2 Security Guards. Depending on the workload
the number of staff may be increased at a later stage.

Depreciation at 20% suggests an average life of five years for the equipment. The
bandwidth is based on current prices; however, the trend indicates the likelihood of
the price going down in the near future.

4.3 Potential Income

The following is an estimate of income for the Hub and the other centres and services.

Table 5: Estimated Monthly Revenue/Annual Income

Estimated Monthly/Annual Income

Per
Description month Income $ Total $
Computer and Internet use
10,000 People * US$1.00 per month -
VoIP 10,000 1.00 10,000
Service Hours 20 Computers * 6 hours *
25 days 3,000 0.50 1,500
Institutional Partner fees (20 initially,
$50 a month each – inclusive of VoIP
services) 20 50.00 1,000
Available VoIP minutes on demand
VoIP 100 handsets*100mins*30 days 300,000 0.03 9,000
Other

TOTAL Monthly Revenue 21,500

TOTAL Annual Income 258,000

The assumptions made here are as follows:

1. There will be two categories of VoIP users namely Prepaid (or fixed rate)
users; and On Demand Users (or variable rate users). It is assumed that
approximately 20% of the population (i.e. 10,000 people) will opt for prepaid
service. This assumption is grounded on the fact that this is the cheapest
option and apparently it is the most ideal for Bugabo people. With Prepaid
option one should be able to make a call from anywhere with the project
handsets upon showing the payment receipt for that particular month. This will
have numerous advantages to both the individual subscribers and the project at
large as follows:

29
 • On average the call rate shall be approximately US$0.02 per minute
compared to on demand rate of US$0.03 per minute.
• Subscribers shall enjoy unlimited access to the services throughout a
month
• Subscribers shall be able to place a call from virtually anywhere to
everywhere within the local area without extra charges
• On the other hand, the project shall benefit in that it will have a sure
(or fixed) income from prepaid subscribers. This, in turn, shall enable
the project to pay for the bandwidth and other operational costs such as
electricity, water, salaries and wages, maintenance and the like. With
prepaid service the collection of revenues shall be made easier.
• The above-mentioned mutual benefits shall attract more prepaid
subscribers hence sustainable revenues to the project
2. On demand rate is mainly meant for non-residents, with the VoIP call rate set
at US$0.03 per minute. Here it is estimated that for each of the 100 VoIP
handsets only 100 minutes per day shall be paid for.
3. Each of 20 computers is used by paying clients, at US$0.50 per hour, for about
6 hours a day. Apparently this may sound as undercharging, however, it is
aimed at encouraging many people to use computers and eventually become
regular users hence more revenues to the project.
4. Each individual partner (initially estimated to 20) shall pay a fee of US$50 per
month for VoIP services. This, however, is a pessimistic estimate only, thus
the number of partner institutions is likely to increase.
5. All above-mentioned VoIP rates are reasonably affordable for nearly each and
every individual in the area.
6. The number of VoIP handsets is estimated to 5 per village of approximately
2400 residents. This implies that 1 VoIP handset is shared by approximately
480 people. This, again, is a pessimistic estimate on the revenue to the project
to ensure that the estimated project income is achieved.
7. Individual entrepreneurs in the area may take the opportunity to offer VoIP
services within their vicinity at extra rates. When taking services from the
project, individual entrepreneurs shall be treated equally as part institutions.
8. This VoIP service will in the long run be extended to the neighbouring
divisions.
9. Partner institutions in this context includes schools (both primary and
secondary); health centres and dispensaries, local NGOs, Local Government
offices, religious institutions, primary courts, cooperatives, and local
entrepreneurs all of which are initially estimated to 20 in total.

This scenario is somewhat simplified, and does not consider differential charging and
additional costs for VoIP telephony outside the local area. However these aspects can
be built in later.

4.4 Contribution from various stakeholders

(i) The Local government

30
The local government in the area will ensure the availability of the following:
• Extension of power from the national electric grid to the base stations as a
medium to long term measure
• Purchase solar panels for each base station as a short term solution to start
with
• Purchase of inveter and back up batteries for the base stations as a short to
long term solution to ensure availability and reliability of services.

(ii) Contribution from the community

• The community will provide space for installation of base stations
• A space for office building
• Security of the building and equipment
• Some volunteers will work on civil works during installation of the base
stations and construction of the building respectively
• Participate into creating awareness for pro-poor ICT within the area
• The existing VSAT at Kibengwe Telecentre will be used for the project
• Offer/share technical expertise and experience from the telecentre staff
• Youths in the area, especially, those with secondary education will be
trained in various computer skills at Kibengwe Telecentre (through a crush
program) and these will, in turn, volunteer for offering services to the
community in the area.
• The community will contribute in the management aspects of the project to
ensure project sustainability.

(iii) University of Dar es Salaam Computing Centre (UCC)

University of Dar es Salaam Computing Centre will provide technical and
organizational support, and will participate in the Research & Development aspects at
a much subsidised rate which will, in turn, result into significant saving in the project
expenditure.

4.5 Prospective benefits

The prospective benefits of the project include the following

• The local transport cost will be reduced

• The time spent in delivering the message in the area will be reduced, since
message delivery and reception is instant using email, VOIP telephone
• Costs used on mobile phone will be reduced and hence use the same fund for
other developmental activities
• Social interactivity and cohesiveness will increase
• Efficiency in schools, hospitals, and other Institutions will be increased
through effective communications.
• Rural farmers will gain knowledge on appropriate farming practices, storage
and marketing channels of their agricultural produce
• Rural farmers will easily be introduced to venture into marketable non-
traditional varieties such as vanilla, flowers etc.
• Local users will have access to the World market place using the Internet.

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 • Rural traders can explore business channels globally
• Teachers and students will gain access to a wide range of literature relevant to
their academic fields
• Medical personnel will be updated on diagnostic and treatment methodologies
for all sorts of diseases around the world.
• Campaign against HIV/AIDS will be more effective through Internet facilities
• Administrative costs amongst government and NGO organs will be
tremendously minimized with the use of email and Internet.
• The success of this project will pose a challenge to the government to speed up
the rural electrification. Most villages in Tanzania have no electricity, which is
a prerequisite to ICT services provision such as computers and the Internet
Access. The central idea here is that with electricity in rural areas, other socio-
economic activities shall be enhanced hence empowering citizens for
development.

Conclusion:

Within the context of the assumptions here, a community driven network enterprise
would not only be sustainable, but would generate a healthy profit to expand and
reinvest back into the area. With a capital cost of about US$84,000, Annual Current
Costs of about US$93,000, and income of over US$258,000, it would pay for itself
within a year, and reap profits of about 45% in the first year only.

Significant costs savings can be made through the provision of community assets. But
the key cost outgoing is clearly bandwidth; and the key income generator is VoIP
telephony.

Bandwidth costs are likely to come down, and of course our advocacy efforts will
hopefully contribute to a much cheaper backhaul in the long term.

Given the facts on the ground there is high potential and greater certainty for such
estimated volume of VoIP telephony use even if the service will be confined initially
to within the local area. This is, in particular, supported by the proposed low cost of
the VoIP services, the current exorbitant charges for GSM mobile phone services, the
bigger number of residents in the area and the relative exposure of the residents to
other ICT services from the Kibengwe Community Telecentre.

Experience from Kibengwe community Telecentre in the area suggests that people are
willing to pay for such service as long as it makes their life much easier. The proposed
VoIP call price rates per minute is likely to go down depending on the number of
users of the facility; meaning that the bigger the number of users the lower the rate per
minute. However, considerable additional analysis, and testing, should be undertaken
before during the initial phase of project implementation.

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References
1. Accenture, Markle Foundation & United Nations Development Programme
(UNDP) (2001). Creating a Development Dynamic – Final Report of the
Digital Opportunity Initiative: A Global Call to Action, 2001.
2. COSTECH (2006). Tanzania Commission for Science and Technology;
http://www.costech.or.tz
3. CSNSGRP (2005). Communication Strategy for the National Strategy for
Growth and Reduction of Poverty; http://www.povertymonitoring.go.tz
4. E-usage (2004). Tanzania e-usage index baseline survey; Prof.Beda
Mutagahywa and Dr.Ngalinda:
5. http://www.researchictafrica.net
6. ICT policy (2003). Tanzania National ICT Policy, 2003
7. Kibengwe (2006). Kibengwe Telecentre, http://www.kibengwe.or.tz
8. National Policies (2006). Key Tanzania National Development Policies and
Strategies; http://www.tzonline.org/policies.htm
9. NPES (1998). The National Poverty Eradication Strategy
10. NSGRP (2005). National Strategy for Growth and Reduction of Poverty in
Tanzania, Vice President’s Office.
11. REPOA (2006). Research on Poverty Alleviation; http://www.repoa.or.tz
12. Tanzania National Website; http://www.tanzania.go.tz
13. TCRA (2006). Tanzania Communication Regulatory Authority,
http://www.tcra.go.tz
14. TPHD Report (2005). Poverty and Human Development Report 2005: Mkuki
and Nyota publishers Ltd
15. Vision (2025). Tanzania Development Vision 2025
16. VRPT (2002). Vulnerability and Resilience to Poverty in Tanzania: Causes,
Consequences and Policy implications; 2002/03: Mkuki and Nyota publishers
Ltd
17. Wangwe, S. and Charle, P. (2005). Macroeconomic Policy Choices For
Growth And Poverty Reduction: The Case Of Tanzania: Professor Samuel
Wangwe and Prosper Charle, May 2005

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 Appendices
Map

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Appendix C: Bugabo Division Google Map
This is an image of the possible Base Station locations in Kibengwe, Tanzania.

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This is an image of all identified and surveyed sites to be covered in Bugabo Division.

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